Selwyn Resources Ltd.: Additional High-Grade Drill Results Confirm Expansion of XY West Deposit

• XYC-278 intersected 21.76 metres true thickness grading 8.90% zinc and 4.35% lead, including 2.47 metres grading 22.33% zinc and 12.40% lead;

• XYC-279 intersected 12.67 metres true thickness grading 10.27% zinc and 3.15% lead, including 2.47 metres grading 21.85% zinc and 6.81% lead; and

• New drill holes in XY West deposit extend the strike length of high grade mineralization in the XY area to more than 2500 metres.

Click here for detailed drill results and tables

Exploration History

The XY West deposit was discovered in 2008 during an exploration program in a fault panel immediately to the northwest of the XY Central deposit (see September 3, 2008 news release). Initial drilling at XY West followed up on the favourable geology identified in a historical drill hole that cored the hanging wall rocks known to overlie the horizon of zinc-lead mineralization. The 2008 program discovery drill hole, XYC-172, was a 1,100 metre step out to the northwest from the XY Central deposit. The ensuing results from 2008 and 2009 drill programs led to an initial Inferred mineral resource to NI 43-101 standards of 1,917,600 tonnes grading 7.70% zinc and 2.45% lead. This mineral resource estimate was prepared by Non-Independent Qualified Person, Mr. John J. O’Donnell, P.Geo. (see February 26, 2009 news release).

All assay results from the exploration and definition drilling program are undergoing quality assurance and quality control review. Upon completion of this review, the data will form the basis for a new mineral resource estimate. Several drill holes were positioned to define limits of bounding fault structures and/or areas of lower-grade zinc-lead mineralization in order to refine limits of the high-grade mineralization for the mine plan. Results from the definition drilling program continue to confirm the 3D geological and structural models for XY West deposit. The location of the new drill holes and lenses can be found on drill plan maps available at www.selwynresources.com.

The Selwyn Project exploration program is being reviewed by Vice President Exploration, Mr. Jason Dunning, M.Sc., P.Geo., and Mr. Wolfgang Schleiss, P.Geo., Manager of Exploration, who is responsible for on-site activities. Mr. Dunning and Mr. Schleiss are both Qualified Persons within the meaning of National Instrument 43-101. All assay data have undergone internal validation of quality assurance and quality control. Selwyn has established a sampling and assay control program with blind insertion of assay blanks, standards and duplicates for the Selwyn Project. A quality control and quality assurance program is in place at ACME Analytical Laboratories Ltd. (“ACME”) and includes blanks, standards and duplicates. At ACME, silver and base metal analyses are conducted by a 23-element, four-acid digestion, ore-grade ICP-AES technique.

Selwyn’s primary focus remains the exploration and development of the properties that make up the Selwyn Project in the Yukon, by the joint venture comprised of Selwyn and Chihong Canada Mining Ltd. The Selwyn Project hosts large tonnages of zinc-lead mineralization which have the potential for large scale production, and could provide a secure supply of zinc and lead to meet the future needs of these markets in Asia and beyond. The recently announced acquisition of ScoZinc Limited, which owns the ScoZinc Mine, provides Selwyn with a second opportunity for growth and the potential for production revenues in 2012.

This press release contains forward-looking statements concerning mineralization at and the development of the Selwyn Project and of the future prospects for the ScoZinc Mine. These forward-looking statements are based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of factors beyond Selwyn’s control, including the results of exploration activities, economic evaluations and engineering studies, the availability of funds in the financial markets on terms acceptable to Selwyn and the public’s view of the economic value of the Selwyn Project and the ScoZinc Mine. Additionally, more drilling is required to confirm the potential of the new discovery areas, expansions of the current resource areas, and the extension of the higher grade deep mineralization to depth at the Selwyn Project. There is no assurance that such additional drilling will expand mineral resources or that the resources being defined can be developed as an economically attractive mine. Uncertainties associated with permitting and other factors could delay development of the Selwyn Project and of the ScoZinc Mine. Although Selwyn has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking statements, there may be other factors that cause results not to be as anticipated or intended. There is no assurance that such information will prove to be accurate, as future events could differ materially from those anticipated in such information and accordingly, there is no assurance that the Selwyn Project or the ScoZinc Mine will be developed into profitable mines. Readers should not place undue reliance on forward-looking statements.